Attracting so many international key players and the resulting employment into Luxembourg through business opportunities and international recognition is not a coincidence at all. The relevant legal frame has been implemented since a long time and is permanently updated to adapt to the market needs for further development. One recent example is the law on commercial leases which transitional period regarding subleases came to an end on 1st March 2019. It is a good example of a legal update of existing statutory provisions in order to suppress malfunctions inappropriate to the nowadays market constraints. Please see here for more details on the new provisions.
Luxembourg real estate, the market to invest in
The prices in the local real estate market have been growing for years due to an offer which is lower in volume than the demand, which in turn is though clearly an opportunity for investors.
This carries opportunities for investors of course, and creates needs regarding corporate structuring, tax matters, financing, regulatory issues, etc., for corporates as well as individuals, whether they are Luxembourg residents or not. Here in Luxembourg, where most situations have an international reach, service providers with a global network as Hogan Lovells are clearly of value.
Luxembourg, the place to be for investment structuring
Real estate asset structuring in Luxembourg is both flexible and pragmatic due to well-designed vehicles. In 2018, According to ALFI statistics, 17,6% of the Luxembourg regulated investment funds had invested in real estate and the development of unregulated vehicles for real estate investment is significant.
Thanks to our global network, we regularly assist international investors on their Luxembourg structuring possibilities and local real estate matters. Our cross-practice and cross-border work organisation allows us to provide assistance to a same client in various fields and various regions, such as:
¬ the drafting of a French commercial lease including details of renewal, rent indexation, guarantees, etc., for a US investor using a Luxembourg RAIF;
¬ the completion of a German financing and the setting up of the corporate local structure with a Luxembourg holding company; and
¬ the formation of a Luxembourg Real Estate Investment Trust with an investment objective targeted to Italy.
We invite you to have a look at our brochure “ Exploring European Market ” to gather information and ideas on European real estate legal frames.
Key moments to share
MIPIM is always a good opportunity to meet people, share ideas, see trends, etc.
Should you want to meet our team, please get in touch!